STAND. COM. REP. NO. 2332

Honolulu, Hawaii

RE: S.B. No. 3325

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 3325 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC SCHOOL MEDICAID REIMBURSEMENTS,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Department of Education to establish an updated plan for maximizing Medicaid reimbursements for administrative and support services provided to students with special needs; and

(2) Require annual reports to the Legislature.

Your Committee received testimony in support of this measure from the Department of Education and one individual.

Your Committee finds that the Department of Education renders necessary services to ensure that students with special needs can access education, and when allowable, the Department seeks Medicaid reimbursement for services provided in accordance with Medicaid requirements. While the Department of Education does seek Medicaid reimbursement, your Committee believes that further oversight and an updated Medicaid Reimbursement Plan are necessary to ensure that the Department maximizes Medicaid reimbursements for administrative and support services for students with special needs. This measure will ensure that the Department of Education maximizes and efficiently uses its Medicaid reimbursements, allowing it to continue providing quality service to students with special needs.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3325, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3325, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Education,

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DONNA MERCADO KIM, Chair